In the run up to the Autumn Budget, a number of business groups, particularly those representing the retail, hospitality and leisure sectors, called on the Government to ease rising employment costs by increasing the employer National Insurance Contributions (NICs) threshold.
The British Retail Consortium, for example, urged the Chancellor to raise the threshold from £5,000 to £6,000, arguing that recent changes to employer NICs have significantly increased employment costs, particularly for businesses that rely on large numbers of part-time and entry-level workers. The trade body UKHospitality, through its #Budget26 campaign, also called for the secondary NIC threshold to rise to £10,000 by April 2029.
No Further Changes
Despite those calls, the Autumn Budget did not introduce any further changes to employer NICs. For employers hoping for immediate relief from rising labour costs, this will be a disappointment, particularly in sectors already facing pressure from increased wage and employment-related expenditure.
Monitoring Developments
Whilst there are no further changes to employer NICs to consider, employers should continue to monitor developments in employment law and workforce costs, particularly as businesses adapt to the wider package of employment reforms introduced by the Government.
For the other Budget changes affecting employers, including the National Living Wage rising to £13.21 an hour from 1 April 2027 and new tax-free mileage rates, see our Budget 2026 summary.
The Employment team at Myerson will continue to monitor developments and provide updates on any changes affecting employers and their workforce.
Speak to Our Employment Law Experts Today
Contact our Employment team for tailored guidance on managing wage increases, budget pressures and workforce planning:
Latest Employment Law News
Stay informed with valuable insights and updates from the latest news in employment law.
Employment Rights Act 2025: Key Changes and What Employers Need to Know as Reforms Take Effect
The Employment Rights Act 2025 (ERA 2025) received Royal Assent on 18 December 2025. It amends the law relating to employment rights to enhance employee protections, bringing major changes throughout 2026 and 2027. With key provisions now in force and further reforms due to take effect throughout 2026 and 2027, our Employment Lawyers outline the...
Read Blog
Top 10 Tips for Employers on the Employment Rights Act 2025 Reforms
Have you made the changes you need to comply with the reforms already in force? The Employment Rights Act 2025 is the most significant shake-up of employment law in decades, which is currently being implemented in phases. A first wave of changes is already in force (April 2026), with further major reforms expected from October 2026 and into...
Read Blog
Autumn Budget 2026: No Changes to Employer National Insurance Contributions
In the run up to the Autumn Budget, a number of business groups, particularly those representing the retail , hospitality and leisure sectors, called on the Government to ease rising employment costs by increasing the employer National Insurance Contributions (NICs) threshold. The British Retail Consortium, for example, urged the Chancellor to...
Read Blog
AI In the Workplace: Employment Law Risks Employers Should Be Aware Of
AI is very quickly changing the way the modern workplace operates. It is being used for streamlining the recruitment process, analysing productivity and absence data, drafting documents and helping with various other routine administrative tasks. In the UK, the rate of adoption of AI by companies has increased greatly with survey findings showing...
Read Blog
Restrictive Covenants for Accountancy Firms: A Practical Drafting Checklist
Restrictive covenants can be a powerful safeguard, but they are only effective if they are well drafted and carefully tailored. Overly broad covenants that are wider than necessary are unlikely to be enforceable, leaving firms exposed precisely when they need protection the most. Our Professional Services Lawyers have created a checklist...
Read Blog
Protecting Client Relationships: Why Restrictive Covenants Matter for Accountants
Restrictive covenants are clauses within an employee’s contract of employment or service agreement which restrict an employee’s actions during or after their employment with the firm. They aim to protect the legitimate interests of the employer’s business by placing limited, time-bound obligations on former employees after their employment ends...
Read Blog
Joanne Evans
Partner & Head of Employment, Board Member and Trustee of Myerson EOT
Joanne has over 25 years of experience acting as an Employment solicitor. Joanne has specialist expertise in major reorganisations and redundancy, complex disciplinary and grievance matters, and exit arrangements.
About Joanne Evans